{"id":133163,"date":"2026-11-15T14:07:36","date_gmt":"2026-11-15T08:37:36","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=133163"},"modified":"2026-11-15T14:07:36","modified_gmt":"2026-11-15T08:37:36","slug":"coal-gasification-in-india","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/coal-gasification-in-india\/","title":{"rendered":"Coal Gasification in India &#8211; Rs. 37,500 Crore Scheme and Strategic Priorities"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>Coal Gasification in India Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A joint study by the Centre for Domestic Economy Policy Research (C-DEP) and the Centre for WTO Studies (CWS) has identified 23 coal-derived products and recommended prioritising hydrogen, synthetic natural gas, methanol and ammonia under India&#8217;s Rs. 37,500-crore coal gasification scheme to reduce dependence on imported fuels, fertilisers and industrial chemicals.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Understanding Coal Gasification<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Coal gasification is a process that <\/span><b>converts coal into a combustible gas mixture<\/b><span style=\"font-weight: 400;\">, commonly known as <\/span><i><span style=\"font-weight: 400;\">syngas<\/span><\/i><span style=\"font-weight: 400;\">, primarily consisting of carbon monoxide and hydrogen.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This is achieved by reacting coal with controlled quantities of oxygen, air or steam at high temperatures.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The resulting syngas can be used directly as a fuel or processed further to produce hydrogen, synthetic natural gas, methanol, ammonia, fertilisers and other industrial chemicals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unlike conventional coal combustion, which primarily generates heat and electricity, gasification enables coal to serve as a feedstock for manufacturing a range of industrial products.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>India&#8217;s National Coal Gasification Mission<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Government of India has committed <\/span><b>Rs. 37,500 crore<\/b><span style=\"font-weight: 400;\"> towards promoting surface coal and lignite gasification projects.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scheme aims to facilitate the gasification of an additional <\/span><b>75 million tonnes of coal and lignite annually<\/b><span style=\"font-weight: 400;\">, while India&#8217;s broader target is to achieve <\/span><b>100 million tonnes of coal gasification capacity by 2030<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The initiative seeks to leverage India&#8217;s substantial coal reserves to reduce dependence on imported energy and fertiliser products, strengthen domestic chemical manufacturing and improve strategic supply security.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>C-DEP-CWS Study and Priority Products<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The study, titled <\/span><i><span style=\"font-weight: 400;\">Coal-to-Chemicals Policy in India: A Strategic Framework for Product Prioritisation under the National Coal Gasification Mission<\/span><\/i><span style=\"font-weight: 400;\">, ranks 23 coal-derived products across eight economic, industrial and strategic parameters.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It recommends directing investments towards products that offer significant import substitution potential, economic returns and strategic supply security.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The priority products identified include:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Hydrogen:<\/b><span style=\"font-weight: 400;\"> Ranked as the highest-priority product, with applications across refining, fertilisers and industrial processes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Synthetic Natural Gas (SNG):<\/b><span style=\"font-weight: 400;\"> Can serve as a substitute for natural gas in several applications and help reduce gas import dependence.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Methanol:<\/b><span style=\"font-weight: 400;\"> An important industrial chemical and feedstock used in multiple downstream industries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Ammonia:<\/b><span style=\"font-weight: 400;\"> A key input for fertiliser manufacturing and other chemical applications.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Dimethyl Ether (DME):<\/b><span style=\"font-weight: 400;\"> A potential alternative fuel and industrial chemical.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>LNG and LPG:<\/b><span style=\"font-weight: 400;\"> Domestic production could help reduce dependence on imported gaseous and liquefied fuels.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Urea and Diammonium Phosphate (DAP):<\/b><span style=\"font-weight: 400;\"> Important fertilisers for which India has significant import requirements.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Import Substitution Potential<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India&#8217;s dependence on imported fuels and fertilisers highlights the economic significance of developing domestic coal-based production.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The study estimates that India imported nearly <\/span><b>US$37 billion worth of LPG, LNG, urea and DAP in 2024<\/b><span style=\"font-weight: 400;\">.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">LPG and LNG imports exceeded <\/span><b>US$27 billion<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Urea and DAP imports accounted for another <\/span><b>US$9.6 billion<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Domestic production of these products through coal gasification could help substitute a portion of these imports, strengthen domestic supply chains and reduce exposure to international price fluctuations and supply disruptions.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Lessons from China&#8217;s Coal-to-Chemicals Industry<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The study draws lessons from China&#8217;s experience in developing its coal-to-chemicals industry.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Integrated industrial clusters helped China expand domestic production of fertilisers, methanol and downstream chemicals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, China&#8217;s experience also highlights important risks associated with rapid capacity expansion, including:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Underutilisation of industrial plants.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">High capital investment requirements.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Significant water constraints.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The study therefore recommends that India avoid rapid, uncoordinated expansion and adopt a <\/span><b>phased investment approach<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It also proposes developing integrated manufacturing clusters where common coal gasification facilities can supply multiple downstream chemical industries. This approach could improve infrastructure utilisation and support economies of scale.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Challenges in Commercialising Coal Gasification<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Commercial viability:<\/b><span style=\"font-weight: 400;\"> The economic feasibility of technologies suited to Indian coal needs to be established before large-scale investments are undertaken.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Technology suitability:<\/b><span style=\"font-weight: 400;\"> Industry must test available technologies and demonstrate their performance under Indian coal conditions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Capital intensity:<\/b><span style=\"font-weight: 400;\"> Coal gasification and downstream chemical manufacturing require substantial investment, making project viability and utilisation critical.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Water constraints:<\/b><span style=\"font-weight: 400;\"> Coal gasification and associated chemical processes can require significant quantities of water, creating challenges in water-stressed regions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Addressing these challenges will be essential before the sector can achieve commercial scale.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Way Forward<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The study recommends a product-focused strategy that aligns investment decisions with import dependence, strategic importance and economic returns.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government has already created policy and financial support, while commercially viable projects would help shape a more targeted product-prioritisation framework.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A phased approach, integrated manufacturing clusters and careful assessment of technology and resource requirements can help India develop a sustainable domestic coal-to-chemicals industry.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Source:<\/b> <strong><a href=\"https:\/\/economictimes.indiatimes.com\/industry\/energy\/oil-gas\/rs-37500-cr-coal-gasification-push-cdep-cws-study-identifies-priority-chemicals-to-cut-import\/printarticle\/135824512.cms\" target=\"_blank\" rel=\"nofollow noopener\">ET<\/a> | <a href=\"https:\/\/www.businessworld.in\/article\/study-maps-23-coal-based-products-to-cut-india-s-fuel-fertiliser-imports-633592\" target=\"_blank\" rel=\"nofollow noopener\">BW<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Through coal gasification in India, the government aims to strengthen domestic production of critical fuels, fertilisers and industrial chemicals while reducing import dependence through strategic investments and technology development.<\/p>\n","protected":false},"author":21,"featured_media":133170,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[11502,60,22,59],"class_list":["post-133163","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-mains-current-affairs","tag-coal-gasification-in-india","tag-mains-articles","tag-upsc-current-affairs","tag-upsc-mains-current-affairs","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/133163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=133163"}],"version-history":[{"count":2,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/133163\/revisions"}],"predecessor-version":[{"id":133175,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/133163\/revisions\/133175"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/133170"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=133163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=133163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=133163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}